LUXEMBOURG (AP) \u2014 Facebook and thousands of other companies could find it vastly more complicated to do business in Europe after a court ruled that personal data sent to U.S. servers is potentially unsafe from government spying.<\/p>\n
Some 4,500 companies have long been able to store users\u2019 personal data \u2014 everything from status updates and photos to personal information like bank details and home addresses \u2014 where they see fit, often in the U.S.<\/p>\n
That could change after Europe\u2019s top court on Tuesday declared invalid a 15-year-old pact allowing the unfettered transfer of personal data outside the European Union\u2019s 28 countries.<\/p>\n
The case was brought by an Austrian law student in the wake of revelations by former U.S. National Security Agency contractor Edward Snowden of the extent of the NSA\u2019s surveillance programs.<\/p>\n
Max Schrems complained that U.S. law doesn\u2019t offer sufficient protection against surveillance of data transferred by Facebook to servers in the United States.<\/p>\n
The verdict could have far-reaching implications for companies operating in Europe.<\/p>\n
It does not mean companies have to immediately stop transferring data to the U.S. Rather, it opens up the possibility that European regulators will be inundated by complaints by consumers who do not want their data stored in the U.S. That would make it hugely difficult for companies to do business.<\/p>\n
\u201cThe message is clear \u2014 that mass surveillance is not possible and against fundamental rights in Europe,\u201d said Schrems after the ruling.<\/p>\n
Companies, he added, \u201ccannot just aid foreign spies and get away with it because they fall under European jurisdiction.\u201d<\/p>\n
The so-called \u201csafe harbor\u201d agreement has allowed companies to send data on users from the EU to U.S. since 2000. That includes information on how users behave online, such as what pages they visit and where they spend money. But also email addresses, passwords, bank details and payroll figures. It does not include the content of emails, however.<\/p>\n
Since its creation, the agreement has helped Internet businesses such as social media. Facebook and Google, for example, earn money from advertising that relies on data on how users behave on the Internet.<\/p>\n
But the revelations of NSA spying have provoked a backlash from European consumers and governments.<\/p>\n
In a separate case, for example, Google is being forced to consider Europeans\u2019 requests to delete from its search results links to content that they find offensive or inappropriate.<\/p>\n
The European Commission, the EU\u2019s executive branch, has tried to revise the \u201csafe harbor\u201d agreement over the past two years and expects Tuesday\u2019s ruling will support that effort.<\/p>\n
\u201cToday\u2019s judgment is an important step toward upholding Europeans\u2019 fundamental rights to data protection,\u201d said European Commission Vice President Frans Timmermans. \u201cIn the light of the ruling we will continue this work toward a renewed and safe framework for the transfer of personal data across the Atlantic.\u201d<\/p>\n
In Washington, White House spokesman Josh Earnest said there are concerns about the economic consequences of the ruling, which is being reviewed.<\/p>\n
\u201cWe are disappointed that the court has struck down an agreement that since 2000 has proved to be critical in protecting both privacy and fostering economic growth in the United States and the European Union,\u201d Earnest said.<\/p>\n
He said the administration believes the decision was based \u201con incorrect assumptions about data privacy protections in the United States.\u201d<\/p>\n
He said the U.S. will work with the EU to provide certainty to companies by releasing an updated framework. The U.S. and the EU will continue working to reach an updated data sharing agreement.<\/p>\n
Schrems, the Austrian student, complained to the data protection authorities in Ireland, where Facebook has its European headquarters, that his information was not safe on U.S. servers.<\/p>\n
Irish authorities initially rejected his complaint, pointing to the \u201csafe harbor\u201d agreement. Now, the Irish data commissioner will now be required to \u201cdecide whether … transfer of the data of Facebook\u2019s European subscribers to the United States should be suspended on the ground that that country does not afford an adequate level of protection of personal data,\u201d the court said.<\/p>\n
In a statement, Facebook said it\u2019s now \u201cimperative that EU and U.S. governments ensure that they continue to provide reliable methods for lawful data transfers and resolve any issues relating to national security.\u201d<\/p>\n
AmCham EU, which represents U.S. companies across all sectors in the EU, said the ruling could have serious implications for economic activity.<\/p>\n
Reaching a new agreement on data sharing will be difficult, says professor Felix Wu of Cardozo Law School in New York.<\/p>\n
\u201cSafe harbor was never designed to address U.S. government surveillance,\u201d he said. Because the 4th Amendment protecting U.S. citizens\u2019 privacy does not apply to people outside the U.S., the data agreement cannot adequately protect Europeans\u2019 data stored in the U.S.<\/p>\n
If European authorities are inundated with complaints about data being stored in the U.S., companies may opt to set up more of their business in Europe. That\u2019s what SWIFT, the international financial payments processor, did.<\/p>\n
Meanwhile, Schrems was lauded by Snowden, the former NSA contractor who flew to Moscow two years ago after revealing information about the agency\u2019s eavesdropping.<\/p>\n
\u201cYou\u2019ve changed the world for the better,\u201d Snowden said in a tweet.<\/p>\n
____<\/p>\n
Geir Moulson in Berlin and Raf Casert in Brussels contributed to the story.<\/p>\n","protected":false},"excerpt":{"rendered":"